A federal jury in Arkansas has awarded Zest Labs a $222 million verdict in a trade secrets case against Walmart, marking one of the largest jury awards in the state’s history. Zest, represented by lead trial counsel Patrick M. Ryan of Bartko Pavia LLP, alleged that Walmart misappropriated its proprietary Zest Fresh Process after entering into a non-disclosure agreement. The technology, designed to reduce food waste through machine learning-based shelf life predictions for produce, was shared with Walmart under the expectation of commercial deployment. Instead, Walmart allegedly used the confidential information to file a secret patent based on Zest’s invention, effectively destroying the trade secret. The jury awarded $72.7 million in compensatory damages and $150 million in punitive damages after finding Walmart’s actions to be willful and malicious.
Gary Metzger, Manager, Zest Labs, commented, “Walmart's misuse of Zest’s trade secret has hindered our ability to achieve the necessary scale to make a substantial impact and help feed the world. This legal victory is a small but crucial triumph for small businesses that often face exploitation by larger corporations, robbing them of the opportunity to bring their innovative solutions to the market. It marks a significant step toward ensuring justice and fair play in the business world," Ryan expressed gratitude for the jury’s decision, stating it sends a strong message against corporate misuse of proprietary technologies.
